As an Airbnb host sometimes you’ll need to issue someone a full refund.
Now Airbnb already has refund policies in place which automatically refund a certain percentage of the booking cost if the refund request is made within an x number of days before the date of check in (actual number of days is determined by the cancellation policy chosen by the host).
In a typical refund situation some of the booking amount will go back to the guest and some will go to the host. The amount paid to the host is the forfeited amount from the booking cost.
This post will deal with a further refund, cases where the host wants to give a full refund and give even the forfeited amount back to the guest.
Steps to issue a full refund, illustrated by an actual Alcoves Airbnb guest.
The guest, Emilie, booked with us and immediately realized she made a mistake. She had wanted to inquire only, but instead had requested for a booking.
The total amount of the booking was USD400. Under the Alcoves cancellation policy, Emilie would have forfeited 50%. So if Emilie cancelled the booking she would have received US200 back and Alcoves would have received USD200 as well.
But since Emilie discovered the error right away, we agreed to issue her a full refund.
1. We asked Emilie to cancel the booking. It’s important that it’s the guest who asks for cancellation as the host’s ranking is affected if it’s the host that cancels. Read here how to modify/cancel an Airbnb booking.
2. Once the booking is cancelled a link for “Issue Refund” will appear alongside the booking. Go to “Host” then “Your Reservations” to see a list of all your bookings.
3. Click issue refund. You can only refund the amount which has been deemed forfeited as the rest of the amount has already been refunded to the guest.
4. So in this case, the total booking amount was for USD400. Under the cancellation policy, Emilie already received USD200 back. I’m now trying to give her back the rest of the USD200 which is the forfeited amount under the cancellation policy.
5. Input the amount of the further refund you want to issue. In this case that would be USD200. Click “Issue Refund”.
Note that the Airbnb fees are never refunded.